ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hamilton Lane's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.86%.
As of today (2026-06-25), Hamilton Lane's WACC % is 8.44%. Hamilton Lane's ROC % is 18.28% (calculated using TTM income statement data).
Hamilton Lane generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Hamilton Lane (NAS:HLNE) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Hamilton Lane's WACC % is 8.44%. Hamilton Lane's ROC % is 18.28% (calculated using TTM income statement data).
Hamilton Lane generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Hamilton Lane ROC % Related Terms
Hamilton Lane ROC % Historical Data
* Premium members only.
The historical data trend for Hamilton Lane's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hamilton Lane (HLNE) has a ROC % of 16.86% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hamilton Lane and its competitors.
Is Hamilton Lane's ROC % too high?
Hamilton Lane's current ROC % is 16.86%. The Asset Management industry median ROC % is 1.20. Hamilton Lane's value of 16.86% is 1310.9% above this industry median. Overall, Hamilton Lane has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hamilton Lane's ROC % compare to UTG and STEP?
Hamilton Lane's ROC % of 16.86% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.20. Hamilton Lane's value of 16.86% is 1310.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Asset Management company?
The median ROC % among Asset Management companies is 1.20, based on 710 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hamilton Lane's current ROC % of 16.86% is 1310.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hamilton Lane and its competitors. For the Asset Management industry, the median ROC % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hamilton Lane's current ROC % is 16.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hamilton Lane stock overvalued right now?
Based on GuruFocus' analysis, Hamilton Lane (HLNE) is currently considered Significantly Undervalued. The stock's GF Value™ is $156.08, compared to a current price of $75.43 — trading 51.7% below its estimated fair value. The current ROC % is 16.86% and 1310.9% above the Asset Management industry median of 1.20. Hamilton Lane's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Hamilton Lane (HLNE), the current ROC % is 16.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hamilton Lane (HLNE) Overvalued in 2026?
Based on GuruFocus' analysis, Hamilton Lane stock appears to be undervalued.
The current stock price of $75.43 is trading 51.7% below its estimated GF Value™ of $156.08.
GuruFocus considers Hamilton Lane to be Significantly Undervalued.
Key valuation signals for HLNE:
ROC %: 16.86%
GF Value™: $156.08 vs. price of $75.43 (51.7% below fair value)
Industry Position: 1310.9% above the Asset Management median
No single metric tells the full story. See the HLNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hamilton Lane Inc is a private markets investment firm globally, providing solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 750 professionals operating in offices throughout North America, Europe, Asia Pacific, and the Middle East. It has approximately $986 billion in assets under management and supervision, composed of nearly $141 billion in discretionary assets and more than $845 billion in non-discretionary assets. The group specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors, and geographies.
77GF Score
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